US Oil Update: Crude Edges Lower After OPEC Raises Production, Geopolitical Tensions Continue to Ease

Oil markets eased on Monday, following Sunday's OPEC+ decision to lift collective output targets by 188,000 barrels per day starting in August. The Brent futures contract edged down 0.6% at $71.65 per barrel. West Texas Intermediate futures fell 0.9% at $68.10/bbl. Following a monthly meeting on Sunday, OPEC said that the seven participating nations notably, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman will implement a production adjustment of 188,000 barrels per day starting August 2026. "Even amid reopening of the strait, members may struggle to utilise the additional capacity due to ongoing risks to their vessels," ANZ analysts said. The downward pressure comes despite escalating geopolitical tensions, including fresh Ukrainian drone strikes on Russian ports and lingering shipping bottlenecks. On the supply-disruption front, Ukrainian attacks in Russia's Leningrad region have inflicted fresh damage on critical oil infrastructure at the Ust-Luga and Vysotsk ports, according to local officials. Conversely, the demand side is seeing a significant reshuffling. Lower discounts have brought Middle Eastern crude to parity with Russian and Iranian.